Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Enhanced Equity Income Fund” fourth-quarter investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the US equity market continued to rally, largely fueled by enthusiasm for artificial intelligence. The Enhanced Equity Income Strategy returned 2.0% (net) for the fourth quarter and 7.5% (net) for the year, compared to 6.5% and 8.9% from its primary benchmark, the S&P 500 Buy/Write Index, and 1.4% and 8.7% for its secondary benchmark, the SPDR Barclays High Yield Bond ETF (JNK), respectively. The Strategy’s total return was significantly affected by investors’ disregard for high-dividend and low-volatility factors, as well as an equity market that failed to expand across sectors. The Strategy anticipates a positive economic outlook for 2026, driven by the Federal Reserve’s interest-rate cuts, tax reductions, capital-expenditure bonus depreciation (OBBBA), and potential lower tariffs, all contributing to growth. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, SCCM Enhanced Equity Income Fund highlighted Kenvue Inc. (NYSE:KVUE). Kenvue Inc. (NYSE:KVUE) is a leading consumer health company spun off from Johnson & Johnson. On February 27, 2026, Kenvue Inc. (NYSE:KVUE) stock closed at $19.12 per share. One-month return of Kenvue Inc. (NYSE:KVUE) was 10.01%, and its shares lost 19.63% over the past 52 weeks. Kenvue Inc. (NYSE:KVUE) has a market capitalization of $36.634 billion.
SCCM Enhanced Equity Income Fund stated the following regarding Kenvue Inc. (NYSE:KVUE) in its fourth quarter 2025 investor letter:
“Kenvue Inc. (NYSE:KVUE) was sold from the strategy during the quarter. The company, a global consumer health business spun off from Johnson & Johnson in 2023, has seen volume trends stabilize following significant investment in its R&D and marketing across its health and beauty brands. However, it continues to face multiple challenges, including pressures on US consumer spending, a prolonged winter season that likely delayed allergy and sun care season, and persistent headwinds from China destocking and distribution issues. Additionally, growing competition from challenger brands and shrinking shelf space have eroded market share, while categories including cold/flu and allergy remain subject to volatile inventory trends. At 19x 2025 EPS, the stock’s valuation is less compelling than when it was initially added to the portfolio in 2023.”
